TMI Blog2023 (5) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... uch payment is in excess of threshold limit. In this case, there is no dispute with regard to the fact that the assessee has deducted TDS wherever interest payments exceed threshold limit, but reversed such TDS deduction on interest payment as and when the parties submit Form Nos.15G/15H within the same financial year. When the assessee has submitted necessary declaration in Form Nos.15G/15H for non-deduction of TDS and also for reversal of TDS deduction on interest payment, then, in our considered view, the AO ought to have accepted the claim of the assessee, because, as per law, if relevant declaration in Form Nos.15G/15H is submitted before the end of the relevant financial year, then, the question of deduction of TDS on interest p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L. 05. According to the provisions of Section 197A(1A), no deduction of tax shall be made, if a person furnishes to the person responsible for paying interest u/s.194A, a declaration in writing. No time limit has been specified by the Section. 06. The Appellant strongly relies on the Supreme Court decision reported in HINDUSTAN COCA COLA BEVERAGE (P.) LTD. vs. COMMISSIONER OF INCOMETAX, reported in (2007) 293 ITR 226 (SC), decided on 16-08-2007. The Apex Court went into the contention in the instant case, which was that since the tax to be recovered by the department on the income has already been paid by the assessee, no further tax should be recovered from the appellant on the same income. Be that as it may, the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not alter the liability to change interest under section 201(1a) of the Act till the date of payment of taxes by the deductee-assessee or liability for the penalty under section 271C of the Act. Nowhere, it has been stated or clarified either in the Act or by the CBDT that once the short deducted tax has been paid by the deductee-assessee, no penalty under section 271 C can be levied... (pp. 729, 7 30). 08. The Appellant submits that filing of Form 15G has not being considered at any stage. 09. The Appellant submits Tax was Deducted at Source on the interest paid to Senior Citizens. They filed Form 15H belatedly. On receipt of the Forms, the TDS was reversed. The Appellant brings to your notice the ITAT Mumbai Bench A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been deducted, it cannot be reversed or retained, but it can only be remitted to the account of the central government. Therefore, computed short deduction of TDS in respect of interest payment to depositors amounting to Rs.11,43,976/-. The assessee carried the matter in appeal before the First Appellate Authority, and the Ld.CIT(A)-1, Madurai, upheld the view of the AO on the issue of filing of Form Nos.15G/15H. The assessee carried the matter in further appeal before the Tribunal and the ITAT D Bench, Chennai, in its order in ITA No.3093/Chny/2014 dated 19.02.2016 directed the AO to examine whether the recipients have any taxable income or not in light of Form Nos.15G/15H. The AO in compliance with the order of the Tribunal verified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or citizens submit declaration in Form Nos.15G/15H, TDS is not deducted on interest payments even if such payment is in excess of threshold limit. In this case, there is no dispute with regard to the fact that the assessee has deducted TDS wherever interest payments exceed threshold limit, but reversed such TDS deduction on interest payment as and when the parties submit Form Nos.15G/15H within the same financial year. In our considered view, when the assessee has submitted necessary declaration in Form Nos.15G/15H for non-deduction of TDS and also for reversal of TDS deduction on interest payment, then, in our considered view, the AO ought to have accepted the claim of the assessee, because, as per law, if relevant declaration in Form Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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